Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.
The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.
Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that, in certain market conditions, the value of the portfolio may decrease whilst more broadly-invested portfolios might grow.
Aims to protect investors from a decline in the value of the primary currencies of the underlying investments relative to the value of the share class currency, and investors will not benefit from an increase in the value of those currencies against the value of the share class currency. The costs of hedging emerging markets currencies can significantly lower hedged returns. Such hedging will not be perfect. Success is not assured.